This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Activists Notch CommonWealth Victory

Stocks in this article: CWH

NEW YORK (The Deal) -- Activists who have been battling for more than a year against management at CommonWealth REIT  (CWH) won a significant victory Tuesday when shareholders voted in favor of removing the commercial real estate firm's board.

Corvex Management and Related Fund Management, who together own about 9.6% of CommonWealth's shares, said that holders of 81% of shares voted in favor of the removal, well above the two-thirds threshold the activists needed.

The funds have proposed a slate of candidates to CommonWealth's board, including billionaire real estate investor Sam Zell and Zell lieutenant David Helfand, and have proposed the two become chairman and CEO, respectively.

Newton, Mass.-based CommonWealth in a statement Wednesday said that as required it will inspect the consents and declare the results within five business days, announcing the formal results on or before March 25.

This is the second attempt by the funds to remove the board. Corvex and Related had support of a large number of shareholders last year, but their effort was stymied after an arbitration panel ruled the activists had not followed CommonWealth bylaws.

Corvex, which is run by one-time Carl Icahn protege Keith Meister, and Jeff T. Blau's Related have argued that CommonWealth's structure and its relationship with an external management firm run by CommonWealth founder Barry Portnoy and his son have been a drain on earnings and represent a conflict of interest.

CommonWealth has countered that the activists are trying to gain control of the REIT without paying a takeover premium.

Meister and Blau in a statement said, "We will immediately reach out to the trustees" to plan an orderly transfer.

"The shareholders have exercised their rights and we look forward to working with the trustees in the coming days to arrange for an orderly transition process that best protects the interests of all shareholders," the executives said in a statement.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs